Nicanor Casteel filed a fishpond application with the government but was determi ned that the area

was still needed for firewood production. Hence, his applicati on was diapproved. Undaunted, he filed an application anew for according to the government no actio n for reconsideration will be acted upon until he files a new application. Meanwhile several applications were submitted by other persons for the portion f or which Casteel applied for. Some of the applications have been approved. Threa ted by the applications of others, he sought the help of his uncle Filipe Deluao who give him about P27k so that he could construct dikes and culitivate marketa ble fishes and to prevent old and new squattersfrom usurping the land. Because o f the funding, a wide productive fishpond was built. And upon learning that portions of the area he applied for were already occupied by rival occupants, he filed protests. Despite evidence of his improvements ove r the land, the Director of Fisheries rejected his application and ordered him t o remove the improvements. Then, he and his uncle's wife entered into a contract whereas Casteel will manag e the fishpond. However, later, the applications of Casteel's rival were cancelled and his appli cation was given due course. He then repudiated his obligation under the contract. Hence, he was sued for spe cific performance and damages.

The "mistake" or "fraud" that results in an implied trust being impressed upon t he property involved, may be the mistake or fraud of a third person, and need no t be a mistake or fraud committed directly by the trustee himself under the impl ied trust. Accordingly, in the instant case, an implied trust was established upon the land acquired by Atty. Pascua even though the operative mistake was a mistake of res pondent trial judge. Respondent Judge may be seen to have intended to convey onl y one-half (1/2) of the land involved as attorney's fees to Atty. Pascua. Atty. Pascua, however, took advantage of the Judge's mistake in order to acquire all t he 21.3445 hectares for himself. Atty. Pascua obviously knew that under his cont ract with his clients, he was entitled to ask only for one-half (1/2) of the lan d. When he purchased the entire land at public auction for P110,000.00 (leaving his clients still owing him P1,500.00), the amount and character of his attorney 's fees became unreasonable and unconscionable and constituted unjust enrichment at the expense of his clients. A constructive trust, in general usage in the United States is not based art an expressed intent that it shall exist, or even on an implied or presumed intent. A constructive trust is created by a court of equity as a means of affording rel ief. Constructive trusts constitute a remedial device "through which preference of se lf is made subordinate to loyalty to others."21 In particular, fraud on the part of the person holding or detaining the property at stake is not essential in or der that an implied trust may spring into being. [w]hen property has been acquired in such circumstances that the holder of the l egal title may not in good conscience retain the beneficial interest, equity con verts him into a trustee." The consequences of an implied trust are, principally, that the implied trustee shall deliver the possession and reconvey title to the property to the beriefici ary of the trust, and to pay to the latter the fruits and other net profit recei ved from such property during the period of wrongful or unconscionable holding, and otherwise to adjust the equities between the trustee holding the legal title and the beneficiaries of the trust.